S&P rates Casmar loans B+, B-

S&P said it assigned a preliminary B+ long-term issuer rating to Casmar (Australia) Pty Ltd. and Casmar Finance LLC.

The agency also said it assigned a preliminary B+ rating and recovery rating of 3 to Casmar's proposed first-lien facilities, which will consist of a $515 million term loan due 2023 and $60 million revolving credit facility due 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The revolver is expected to be largely undrawn at financial close of the transaction, S&P noted.

S&P also said it assigned a preliminary B- long-term issue rating and recovery rating of 6 to the company's proposed A$160 million second-lien term loan due 2024.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The ratings reflect an assessment of SAI Global's leading market position for its risk management services in large global markets and property settlement services in Australia, highly diverse customer and end markets and high customer-retention rates, S&P said.

Offsetting these strengths is the company's highly leveraged financial profile under financial sponsor ownership, the agency said, as well as SAI Global's small size and modest entry barriers in certain services.

The company also is exposed to competitive pressures from larger players and a subdued business environment, S&P added.

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